Porsche AG Seeks to Increase Startup Investments in Blockchain Technology and Artificial Intelligence by Millions
Over the next five years, the world will see a lot of new investments coming from globally-known, German-based automobile manufacturer Porsche AG. Lately, they have been turning their attention towards blockchain and artificial intelligence (AI) technology. During this time span, a recent report states that the company plans to invest EUR 150 million (approximately $176 million) towards these innovative efforts.
The decision to increase the investment is a result of the company’s desire to:
“gain access to trends, new technologies and business models.”
This will further add to their desire to engage in start-up investment activities throughout commerce, but these thriving technologies have had too much attention lately to ignore. Primarily, Porsche AG wants to focus on companies that are in the “early and growth” stages. Along with blockchain and AI, the company is also looking at companies involved with “customer experience, mobility and digital lifestyle.”
According to the press release, Deputy Chairman and Member of the Executive Board for Finance and IT at Porsche AG Lutz Mesche commented on how the business model needs to be modified. He said:
“To continue building on the success that we have enjoyed over the past few years, we must fundamentally change our business model. Porsche has always been among the pioneers of the automotive industry. To date, innovation has been driven to a large degree by technology and with strong links to our current core competencies. In some cases, the changes that are now becoming necessary are linked to topics beyond our main fields of expertise. With this in mind, it is essential that we build a strong ecosystem with competent partners.”
Along with seeking out new investments for startups, Porsche has been working in their partnership with XAIN to apply blockchain technology to their own vehicles. Porsche Ventures, a minority shareholder, already applies the blockchain to the history of vehicles. In the original report, the shareholder invested in a Zurich-based company called WayRay, which:
“develops and produces holographic augmented reality head-up display technologies and is working on the ability to seamlessly integrate virtual objects into the driving experience.”
Porsche is not the only automobile company in the industry to be working with blockchain technology. Daimler AG, the manufacturer of the Mercedes-Benz and multiple Smart cars, is working on a cryptocurrency called the MobiCoin. This coin would be issued to drivers that maintain driving habits that are environmentally friendly.
Another company, Audi, recently announced that they would be working on discovering the best way to integrate blockchain technology to their distribution processing procedures, both physically and financially.